When Paul S. Otellini, Intel’s chief executive, takes the stage at the [Consumer Electronics] show Thursday, he is expected to present a new Intel focused on selling a digital lifestyle rather than hardware.
Instead of bits and bytes, Mr. Otellini, the first nonengineer to run Intel, is expected to spend much of his time talking about cool new music and video features that will be made possible by the new home entertainment platform, called Viiv, and Core, a low-powered chip that will eclipse the Pentium M chip for portable computers.
The transformation of Intel will, in part, be defined by its new alliance with Apple Computer, which has come to dominate the digital music business and is entering the nascent digital video market with its iPod players.
[…] While an Apple-Intel living room alliance might not emerge as early as January, most industry observers say they believe that Intel’s alliance with Apple was shaped in part by Microsoft’s decision to pick the I.B.M. PowerPC chip for its Xbox 360 game machine.
“Intel has begun tuning up Yonah for an orchestra we haven’t heard yet,” said Richard Doherty, a computer industry analyst and president of Envisioneering Inc. in Seaford, N.Y.